This is just categorically wrong and mistaken. This is not a question of a company operating in a high-risk and high-reward sector, but one of fraud. FTX used its customer’s deposits to stave off Alameda’s own insolvency and essentially stole his users’ funds. Labeling this as a thought experiment or as something that could be handled better is inaccurate and does a disservice to the irresponsible and immoral actions that took place here. It is not an interesting exercise that FTX owes its users close to $10 billion. Now, we are all left wondering what exactly happened here and who enabled such egregious actions. This is honestly a Lehman moment for crypto or a Enron-type event.
This is just categorically wrong and mistaken. This is not a question of a company operating in a high-risk and high-reward sector, but one of fraud. FTX used its customer’s deposits to stave off Alameda’s own insolvency and essentially stole his users’ funds. Labeling this as a thought experiment or as something that could be handled better is inaccurate and does a disservice to the irresponsible and immoral actions that took place here. It is not an interesting exercise that FTX owes its users close to $10 billion. Now, we are all left wondering what exactly happened here and who enabled such egregious actions. This is honestly a Lehman moment for crypto or a Enron-type event.